TRG | The Bottom Line – 5/8

Construction Partners (ROAD) reported a solid Q2’26 (March) beat this week, fueled by solid organic growth and steady M&A contribution. FY’26 guidance was updated to reflect the beat and underlying the increased outlook remains solid organic growth (+7-8%) and contribution from acquisitions ($225-235MM to revenues). Underpinning demand and record backlogs ($3.14B) is the broad U.S. reindustrialization secular trend. ROAD in its earnings call focused on a wide variety infrastructure and heavy non-res projects from TX to TN. Newly acquired TN-based Four Star Paving is working on a $28MM contract for new asphalt paving jobs related to 12 warehouse construction sites. TX-based Lone Star Paving is working on 8 data center projects with a $100MM contract value. Reindustrialization isn’t just data centers; it’s the build out of a wide variety of projects that are the direct result of bringing more production back to the U.S.

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